On 1 July 2019, the Protecting Your Superannuation legislation came into effect. It’s designed to protect super savings, particularly for any employees who have low balances or have insurance attached to their super.
The legislation has set a cap on the fees charged on accounts with low balances. If an employee’s account balance is below $6,000, the total fees we charge cannot exceed 3% pa. Exit fees (including contribution split fee) have also been removed.
If there are no contributions or rollovers made to an employee’s super account for 16 months, we’re required to cancel any insurance cover attached to their account, unless you are paying their insurance premiums separately.
If an employee’s super balance is less than $6,000 and is inactive for 16 months or more, we‘re required to transfer it to the ATO. If any of your employees’ accounts are impacted by this change, we’ll contact them with more information. They can ensure their account remains active and avoid the automatic transfer to the ATO by taking certain steps.
We’re providing your employees with information about these changes through the brochure attached to Annual Statement. Your employees can find out more at mlc.com.au/protecting your super. We’re also providing advisers with information updates to help any of your employees who may be their clients.
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